REVOLVE Q3 Sales Rise 20% to $356 Million

According to its November 3 results announcement, trailing 12-month active customers increased 18% to 3.243 million. Orders rose 19%, while average order value fell 5% to $292. The REVOLVE segment generated $306.8 million in sales and FWRD contributed $49.2 million, with both growing 20%.

International sales rose 22%, compared with 20% growth domestically. Net income declined 27% to $15.5 million. The comparison includes a $4.5 million insurance recovery in the prior-year quarter, worth approximately $3.4 million after tax. Gross margin slipped to 53.9% from 54.6%, while marketing spending increased.

The results show stronger customer demand alongside pressure on profitability. They arrive as REVOLVE expands physical retail, including its new Aventura Mall store. October sales grew by a mid-teen percentage, although management cautioned that November and December face tougher year-over-year comparisons.